Released: February 27, 2008

Commissioner of Insurance Jim Donelon says insurance companies wanting to participate in the program that offers them up to $10 million in matching grant money should get their applications in soon. The last day to take part in the Insure Louisiana Incentive Program is March 4, 2008. The application, public invitation notice and regulation can be found on the Department of Insurance Web site at www.ldi.state.la.us. Commissioner Donelon says look for the Insure Louisiana Incentive Program logo.

This is the second round of the $100 million economic development plan designed by the Louisiana Legislature to attract more property and casualty insurers to Louisiana and to increase the private market capacity by 15%. Five insurance companies received grants totaling $29 million in the program’s first round that ended November 1, 2007. Because not all of the $100 million in Incentive Program grant money was awarded in the first round, the remaining $71 million is still available to insurers.

Any company not currently licensed to write property insurance in Louisiana may apply for participation in the program conditioned on the submission of a simultaneous application for authority to write the eligible lines of business. Details of the incentive Program are as follows:

• It provides matching funds to qualified property insurance companies from a $100 million state fund.

• Individual grants allocated are no less than $2 million nor in excess of $10 million.

• Insurers who were allocated a grant in response to the first invitation may apply for an additional grant up to a cumulative of the $10 million limit.

• At least 50% of the net written premium shall be received from policyholders whose property is located in the 37 parishes included in the federal Gulf Opportunity Zone Act in Louisiana.

• Insurers must also write 25% of the net written premium for policyholders whose property is insured by the Louisiana Citizens Property Insurance Corporation (Citizens). And at least half of this 25% must be policyholders whose property is located in parishes included in the Gulf Opportunity Zone Act in Louisiana.

As was done in the first round, a decision on grant awards will be made by Department of Insurance officials with all approved applications being forwarded to the Louisiana Joint Legislative Committee on the Budget for review and approval before any monies can be disbursed.

Rules and conditions for the program apply as outlined in the legislation and in Department of Insurance Regulation 82 posted on the Department's Web site: www.ldi.state.la.us along with the public invitation notice and application.